The announcement of the merger of India’s biggest mortgage lender HDFC Ltd. with HDFC Bank, the largest private sector bank, sharply listed sentiment in the market with key indices gaining more than 2%.
The S&P BSE Sensex surged 1.335. 05 points, or 2.25%, to 60,611.74.
The gain was led by HDFC Bank that rose 9.97% followed by HDFC Ltd. that gained 9.3% at close. The other top gainers included Kotak Mahindra Bank up 3.32%, HUL up 2.24% and Sun Pharma up 1.95%.
The NSE Nifty-50 index, too, surged 382.95 points, or 2.17%, to 18,053.40.
“Domestic market was lifted by the announcement of HDFC bank and HDFC merger, improving sentiments of the stock market and financial sector,” said Vinod Nair, head of research at Geojit Financial Services.
“The upcoming focus of the market will be on earnings reports and RBI meeting this week. Q4 results will have a decent start supported by IT sector while RBI is expected to hold the rates with an accommodative policy,” he added.
“We believe the next leg of the rally in the benchmark index will be driven by the BFSI space, as banking companies are likely to post solid Q4FY22 earnings, driven by sequential improvement in loan growth,” Naveen Kulkarni, chief investment officer, Axis Securities said,
“Moreover, the improving asset quality trend will continue for the quarter, bringing further confidence to the space,” he added.
